Your need for life insurance is dependent on your personal and financial needs. As your life changes, your life insurance coverage may need to change as well to adapt to your current needs.
Some life changes that may require a policy "tune-up" include:
There are several different types of life insurance products available. The most common include:
Term life insurance provides life insurance protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It's generally less expensive than permanent life insurance, and is available in varying term periods with fixed premiums from a one- (annual renewable term) to 20-year period (level term). Furthermore, term insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.
Whole life insurance is a form of permanent life insurance that remains in force during the insured person's lifetime, provided premiums are paid as specified in the policy. Whole life insurance can build cash value.
Children's Whole Life Insurance For children, life insurance needs is not measured by current financial obligations, but by what the future will hold. Children's whole life insurance allows coverage to be put in place before future health problems may arise. Auto-Owners Simplified Issue Children's Whole Life Insurance provides coverage for children that remains in force for a lifetime. Coverage, premiums and cash value are guaranteed until age 110 with policy amounts available from $10,000 to $50,000.
Universal life insurance is a form of permanent life insurance characterized by its flexible premiums, flexible face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.